Which of the following is true regarding the payback method?

Question 18 options:

a)	It favors projects with longer payback periods.

b)	It can be used to measure the liquidity of an investment project.

c)	It ignores depreciation tax shelter.

d)	It is not applicable to projects with unequal lives.

e)	It requires trial and error method to compute payback period for an investment project.

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